As 2018 gets off to a start, there are a few trends in real estate to pay close attention to. A new tax code is set to go into effect, for one. For another, millennials are likewise poised to become the largest segment of home-buyers. What do these trends point to? The answer may not be very good
Spend More, Get Less
According to a recent article in the Washington Post, the 2018 trends in real estate may not be very positive. The new tax code’s effect on buying and selling homes may take time to materialize.
Currently, the real estate market is seeing marked low inventory. This means there are fewer homes for sale. Under proposed plans, homeowners may be required to live in their homes for five out of the last eight years in order to receive $250,000 – $500,000 tax-free from a home sale.
Under current practices, homeowners are only required to occupy their home in two out of the last five years. This is meant to discourage aggressive flipping. However, if new guidelines are enacted it will likely keep many people from selling.
The other concern is the capping of SALT deductions which will affect many states with high home prices.
“The elimination of SALT (state and local tax) deductions might encourage a few more homeowners to sell in a higher-cost state and move to a lower-cost state, but only if they can get a comparable job. No one wants to net out with a lower standard of living because they’re paying lower taxes but getting less money.” – Washington Post\
What To Do?
Of course, this is precisely where City vs City can help. City vs City is a powerful cost of living calculator that determines the real cost of living in your city. We then compare your cost of living in another city.
As the Washington Post points out and we’ve previously mentioned, individuals are actively leaving high-cost states in favor of ones with a better cost of living. However, it does you no good to leave one city for another if your standard of living goes down.
City vs City looks at the real cost of living in your city an compares it with another one. We examine income, savings, expenses, as well as state and local taxes. Will your tax burden be different in your new city? Better? Worse? City vs City will let you know.